Universal Technical Institute, Inc. , the leading provider of transportation technician training, reported financial results for the fiscal 2021 second quarter ended March 31, 2021.
“I’m pleased with the continued progress we made across our business and with our students this quarter as we saw accelerating improvement in our most important leading metrics.” said Jerome Grant, UTI’s Chief Executive Officer.
“This quarter we also took several meaningful steps as we begin to execute on our ambitious growth and diversification strategy. The announced acquisition of MIAT College of Technology will not only give us exposure to a new geographic market but will also allow us to quickly expand new programs in high-demand fields such as renewable energy, aviation, HVACR and robotics throughout our campus footprint. Additionally, the recently announced new campuses in Austin, TX and Miami, FL will be the first designed to utilize our fully blended learning model, which will allow for greater efficiency and space utilization and will expand our presence in growing markets.”
Grant continued, “I want to emphasize that these are just initial steps, and we are actively exploring additional growth opportunities that align with our broader strategy. Our strategy is focused on expanding UTI’s value proposition and delivering a high-quality technical education in multiple fields with strong demand and exciting career paths. We believe the need for our services and the education we provide is significant and growing across this country. We as a team look forward to continuing to execute on this strategy and moving this organization along the right path.”
Financial Results for the Three-Month Period Ended March 31, 2021 Compared to 2020
“The overall strength in the front-end of our business and our improving operating performance puts us in excellent position to achieve our guidance for the year, which we believe would set us exceptionally well for fiscal 2022” said UTI Chief Financial Officer Troy Anderson. “With the strong momentum in our base business, as well as the expected accretive effects of our announced initiatives and potential additional opportunities for growth, we are very excited for what the future of this business holds. Assuming the successful execution of the MIAT acquisition and launch of our two new campuses within the planned timelines, we estimate average annual revenue growth should exceed 10% over the next several years, resulting in revenue solidly over $500 million by fiscal 2025, with adjusted EBITDA margin in excess of 20%. Our expected growth and margin expansion are critical components for driving shareholder value creation.”
Balance Sheet and Liquidity
At March 31, 2021, UTI’s total available liquidity was $78.5 million consisting of $59.0 million of cash and cash equivalents and $19.5 million of short-term, held-to-maturity securities. The company continues to explore potential financing opportunities for the Avondale campus to increase available capital.
Financial Results for the Six-Month Period Ended March 31, 2021 Compared to 2020
*See “Use of Non-GAAP Financial Information” below.
Student Metrics |
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Three Months Ended |
Six Months Ended |
||||||||||
March 31, |
March 31, |
||||||||||
2021 |
2020 |
2021 |
2020 |
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Total new student starts |
2,405 |
2,093 |
4,332 |
3,687 |
|||||||
Average undergraduate full-time active students |
11,356 |
10,246 |
11,585 |
10,923 |
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End of period undergraduate full-time active students |
10,945 |
7,373 |
10,945 |
7,373 |
For UTI’s most recent investor presentation and quarterly financial supplement, please see the “Events” section of its investor relations website at https://investor.uti.edu.
Company Contact:
Troy R. Anderson
Chief Financial Officer
Universal Technical Institute, Inc.
(623) 445-9365
Investor Relations Contact:
Robert Winters or Wyatt Turk
Alpha IR Group
(312) 445-2870
UTI@alpha-ir.com